Law:

Section:

Section 90 of the Finance (No. 2) Act, 1998, read with section 245D of the Income-tax Act, 1961 - Kar Vivad Samadhan Scheme - Assessment years 1988-89, 1989-90, 1992-93 and 1993-94 - Whether once final certificate is granted under section 90(2), effect would be that all proceedings and other orders come to an end and order passed under section 90(2) will prevail over other orders and thereafter total immunity is granted to assessee concerned - Held, yes - Whether KVSS would not apply where there is an order passed by Settlement Commission under section 245D(4) and bar would arise only if there is an order passed by the Settlement Commission under section 245D(4) and not otherwise - Held, yes FACTS The assessee's case was pending before the Settlement Commission. During the pendency the assessee approached the designated authority under the KVSS. The designated authority finally determined the income of the assessee for the relevant assessment years and issued the final certificate under section 90(2), read with section 91 of the Finance (No. 2) Act, 1998 under the scheme in full and final settlement of arrears. Subsequently, the Settlement Commission also determined the income of the assessee with regard to the same assessment years and held that the Settlement Commission was not empowered to allow the assessee to withdraw the application pending before it. On writ : HELD It is explicitly clear from section 90(2) that only if an order is passed by the Settlement Commission under sub-section (4) of section 245D, the said scheme will not apply. There was no dispute that in the instant case no final order was passed by the Settlement Commission under sub-section (4) of section 245D, when the matter was taken up by the designated authority. [Para 15] Once the final certificate is granted under section 90(2), effect would be that all the proceedings and other orders come to an end and the order passed under section 90(2) will prevail over other orders and thereafter, total immunity is granted to the assessee concerned. The bar would arise only if there is an order passed by the Settlement Commission under section 245D(4) and not otherwise.[Para 16] In view of the…

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